Gold prices have been on an upward trend since the last quarter all over the world. In close proximity comes the finding by World Gold Council that the degree of gold recycling in India rose by 53%, from 20.3 MT in the October-December 2021 period to 30.5 MT in the corresponding time frame in 2022.
Jewellers confirm stating that nearly 50 % of all gold transactions take place by exchanging old gold. The trend is even more pronounced in Gujarat, a state known for its high consumption of According to WGC estimates, of the nationwide 97.6 MT gold, some 20 MT gold was recycled in the state in 2022.
Elaborating on the same Somsundaram PR, regional CEO, India, WGC shared: “During Q4 of 2022, India also witnessed a sharp surge in gold recycling. This surge in volume is mainly due to the increase in the rupee-denominated gold price, which was up 3% quarter-on-quarter in 2022. The RBI continued its gold purchases adding 33.5 tonnes in 2022, 57% lower than in 2021, when it had purchased 77.5 tonnes.”
Explaining further, Manoj Soni, member, Jewellers’ Association Of Ahmedabad (JAA) shared that gold had been in high demand since Diwali and in preparation for the winter wedding season. “However, since the price of gold has been on a climb up over the past few months leaving people’s budgets toppled, the degree of recycling gold increased,” he stated, adding that many also ended up exchanging previously purchased bars and coins to compensate for the wedding purpose.